D8.1– Market Analysis

AA

In short, our aim in this deliverable is to report the current situation of the market and make some estimation regarding its size. Also, we seek relevant and recommended markets that it is easy to enter with minor changes in the iTRACK solution. In addition, we examine the existing technology solutions and iTRACK’s competition and point out iTRACK’s competitive advantage. Closing the deliverable, we conclude with some elements that should be addressed during the next steps of the project regarding iTRACK’s exploitation and go-to-market strategy.

A critical issue that arised during our research, is the gap that exists in published material for this market. Sources of information are focusing on the funding given to the Humanitarian Aid industry in general that is estimated on 22.2B during 2017 and on funding channels. To the best of our knowledge, there are no complete and well-defined reports on the budget allocated in the different services and activities (e.g. goods, security logistics, additional services etc.) of the humanitarian aid missions. Also, in those that exist, the budget that is spent on the security and safety of the humanitarian aid missions is not clear. For example, WFP reported that the 5% of its budget is allocated into security issues. However, findings revealed a wide variance in methods and levels of security allocations, across country and field offices, often even from within the same organisation, and with their estimated levels of annual expenditure on security ranging from under $5,000 to upwards $100,000.

Thus, as it is hard to identify the size of the market we started making some estimations, in order to define the budget allotted in ICT-enabled methods to ensure safety of the Humanitarian Aid operators in the field. We made estimations regarding this amount using data from the global security market and ICT enabled security market. With a rough estimation, we calculated that an amount of about 188M is spent to the ICT-enabled methods in order to ensure safety of the humanitarian aid operators in the field. Due to the lack of relevant data, estimations and projections for the future can be hardly made. However, we could say that as International Humanitarian Response is increased year by year, the budget spent for security purposes will be also increased. Hence, the market size will expand.

Regarding the targeting organizations apart from the smaller and medium organizations that can’t afford to use the current solutions, iTRACK can also approach larger NGOs to offer its 360o solution for humanitarian missions. However, there are some barriers to enter this market that have to do with the compatibility of iTRACK solution with existing systems of humanitarian organisations. With the particularity of the domain that includes many organizations that don’t work with the same manner and with the regulations that vary across different countries.

Regarding relevant markets, disaster management industry is the most relevant market for iTRACK solution to enter with minor modifications. Regarding the magnitude of this market, it worthed 88.58B in 2015 and it is estimated to worth 101.33B by 2020.The particularity of this market includes rapid responses in the field when a disaster occurs and quick evaluation of the current situation. Therefore, providing real-time information and alerts to the personnel, stable communication, tracking and real-time decision-support are critical. In addition, iTRACK solution could be also used in the insurance market that is wider and worths 4.554 trillion. In this market, iTRACK could be used to decrease the risk for both the insurance firm, the third-party logistics and the NGOs, using components such as personnel, assets and vehicle tracking. These markets will be further explored and analysed in the exploitation phase and the next steps of the project.

Also, in this deliverable we examine existing technology solutions and potential competitors in order to pinpoint iTRACK’s competitive advantage. We identified that apart from adding novel sensors and technology where it currently not exists, the competitive advantage of iTRACK lies on the fact that it combines and unites different functionalities and solutions for personnel tracking and assets management in one system and they are all integrated using a Service Oriented Architecture. In addition, a substantial portion of iTRACK’s competitive advantage is rooted in its methodology and team.

Regarding pricing strategy and market share of iTRACK, it would be of great interest to conduct a qualitative research in organisations, local NGOs and subcontractors during the next steps of the project in order to further define them. Closing the deliverable, we make a first attempt to clarify the next points of our research towards iTRACK’s exploitation. Our next steps include further details on the number of organisations that will be targeted, the pricing policy, and as well as iTRACK’s market share.